Logo of Phnom Penh Post newspaper Phnom Penh Post - Consumer credit hits $7B in Q2

Consumer credit hits $7B in Q2

Content image - Phnom Penh Post
An Acleda Bank Plc employee hands money to a customer. Heng Chivoan

Consumer credit hits $7B in Q2

The total outstanding balance of consumer credit in Cambodia continued to steadily increase, reaching $7.16 billion by the end of June – a 6.8 per cent increase from the first quarter – according to a Credit Bureau Cambodia (CBC) report released last week.

The number of consumer loan accounts increased by 5.03 per cent quarter-on-quarter, bringing the total number of accounts to 1.19 million, equal to 37.67 per cent of total individual accounts in the market, said the report.

As of June, non-performing loans after 30 days (NPL 30) fell to 1.19 per cent from 1.24 per cent at the end of March, it said.

The $7.16 billion in outstanding consumer credit accounted for roughly 30.22 per cent of the total outstanding balance of individual loans in the market.

However, the report said, the number of customers applying for consumer credit in its three forms – personal finance, credit cards and mortgages – all dropped 19.29 per cent.

The report said the biggest drop was in mortgage applications, which fell by 36 per cent quarter-on-quarter, with the coastal regions seeing the sharpest drop at 49 per cent.

Applications for credit cards fell by nine per cent and personal finance applications shrank 18 per cent, it said.

CBC CEO Oeur Sothearoath said this quarter was not entirely different from previous years, in which consumer credit applications consistently dropped in the second quarter.

“However, compared to the same period in 2018, the number of applications increased by 9.03 per cent this quarter,” he said.

Sothearoath said the number of consumer credit accounts has grown steadily since last year at between five and seven per cent each quarter, with the outstanding balance increasing at between six and eight per cent.

Acleda Bank Plc president and CEO In Channy attributed the decline in the number of consumer credit applications during the second quarter to a decline in consumer spending.

“The number of consumer credit applications may have fallen, but the balance has grown largely,” he said.

MOST VIEWED

  • ‘Kingdom one of safest to visit in Covid-19 era’

    The Ministry of Tourism on January 12 proclaimed Cambodia as one of the safest countries to visit in light of the Kingdom having been ranked number one in the world by the Senegalese Economic Prospective Bureau for its success in handling the Covid-19 pandemic. In rankings

  • Kingdom accepts Chinese vaccine, PM first to get jab

    Prime Minister Hun Sen said China would offer Cambodia an immediate donation of one million doses of the Covid-19 vaccine produced by the Sinopharm company. In an audio message addressing the public on the night of January 15, he said Cambodia has accepted the offer and

  • Reeling in Cambodia’s real estate sector

    A new norm sets the scene but risks continue to play out in the background A cold wind sweeps through the streets of Boeung Trabek on an early January morning as buyers and traders engage in commerce under bright blue skies. From a distance, the

  • Hun Sen: Lakes filled in for national developments

    Prime Minister Hun Sen has announced continued operations to fill some lakes in Phnom Penh to create land for developments, though he is against the unrelated practice of damming rivers or blocking waterways. Speaking at the inauguration of the Ministry of Public Works and Transport

  • Koh Preus upgrades 70% complete

    Initial construction of a nearly $30 million tourism infrastructure project on Preah Sihanouk province’s Koh Preus Island is “about 70 per cent complete”, according to an official with the developer. Heng Thou, construction site manager of Angela Real Estate Co Ltd (ARE), told The Post that

  • Local media loses a giant, and The Post a great friend

    Cheang Sokha, a gifted and streetwise reporter who rose to the highest ranks of Cambodian media and was beloved for his sharp intelligence, world-class humour and endless generosity, died on Friday in his hometown of Phnom Penh. He was 42. His wife, Sok Sophorn, said he